MetLife (MET) Bank of America Securities Financial Services Conference summary

Strategic direction and five-year plan

• New Frontier strategy launched after 18 months of planning, building on the success of the previous Next Horizon plan.

• Focuses on responsible growth, targeting four core areas: group benefits, retirement platforms, asset management, and high-growth international markets.

• ROE target increased from 12–14% to 15–17%, with a new double-digit EPS growth target and cumulative cash flow goal raised to $25 billion.

• Emphasis on growth, attractive returns, and lower risk through diversification and operational efficiency.

Group benefits and U.S. market trends

• Group benefits business aims for 4–7% PFO growth, leveraging size, scale, and strong broker relationships.

• Investments in digital capabilities improve employee benefit selection and usage, supporting persistency.

• Margins remain healthy, with benefit ratios stable or improving and repricing actions in dental taking full effect in 2025.

• Opportunities exist to deepen product penetration within long-standing national account relationships.

Retirement and investment management

• Retirement business benefits from stable and improving spread environment, with variable investment income (VII) projected to rise from $1B in 2024 to $1.7B in 2025.

• Pension Risk Transfer pipeline remains strong, especially in the jumbo market segment.

• Asset management segment targets $1 trillion AUM, supported by recent acquisitions (PineBridge, Mesirow) and a focus on scale and unique capabilities.

• Commercial real estate outlook is stabilizing, with office space nearing peak vacancy and non-office sectors recovering.